1 Proposal to provide Risk based internal audit and compliance services Riskpro, India
Jun 25, 2015
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Proposal to provide Risk based internal audit
and compliance services
Riskpro, India
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Make Decisions……
Take Risks…….......
Your partner in
Risk Management /
compliance / audit
Experience Success!
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Contents
Background
Your requirements
Our commitment
About Riskpro India
Our differentiating factors
Our key clients
Team experiences
Quality assured
Clear and continuous communication
Our fees
Detailed CV‟s of senior team members, Partners and advisors
Contact details
Annexure I - Our audit methodology
Annexure II - Legal compliance
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Background - Who is Riskpro… Why us?
ABOUT US
Riskpro is an organisation of member firms around India devoted to client service excellence. Member firms offer wide range of services in the field of risk management.
Currently it has offices in three major cities Mumbai, Delhi and Bangalore and alliances in other cities.
Managed by experienced professionals with experiences spanning various industries.
MISSION
Provide integrated risk management
consulting services to mid-large sized corporate /financial institutions in India
Be the preferred service provider for complete Governance, Risk and Compliance (GRC) solutions.
VALUE PROPOSITION
You get quality advisory, normally delivered by large consulting firms, at fee levels charged by independent & small firms
High quality deliverables
Multi-skilled & multi-disciplined organisation.
Timely completion of any task
Affordable alternative to large firms
DIFFERENTIATORS
Risk Management is our main focus
Over 200 years of cumulative experience
Hybrid Delivery model
Ability to take on large and complex projects due to delivery capabilities
We Hold hands, not shake hands.
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Your requirements
● You require a firm with not only demonstrable skills and experience in
your sector, but also the ability to deliver seamless compliance and
business support services that match your development plans;
● You also wish to work with a firm that is personable and easy to deal
with. While we operate in an environment that demands honed
technical ability and a degree of formality, arising from the
professional standards we observe, we regard ourselves as a flexible
and responsive team that has client relationships at its heart; and
● You, also wish to ensure that your auditors, consultants and advisers
are appropriate for tomorrow's environment.
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Our commitment
We commit to you that we will:
● dedicate our best resources to ensure that your needs are met;
● provide an effective, efficient and smart consulting services;
● adhere to timeliness and reporting deadlines;
● provide constructive suggestions on improving processes and
controls;
● work closely with your management in a co-operative environment;
and
● keep you regularly updated on significant changes in regulatory,
accounting and other compliance sectors.
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About Riskpro India
Riskpro is India‟s first national practice dedicated to risk management services and
training, corporate governance, and global regulatory compliances
Risk can be defined as a prospect of loss or reduced gain that can adversely affect the
achievement of an organisation‟s objectives
When greed overtakes need, it spells trouble. Manifested as „bankruptcy‟ in much of the
developed world and „corruption‟ closer to home, greed has clearly disrupted some major
industrialised economies and enhanced the risks of doing business
In today‟s world, risks are not few. The reason companies so often fail to systematically
manage their key risks is rooted in the way they define the risks they face. Risks are
manageable and the answer to untapped business opportunities that lie dormant waiting
for risk factors to turn favourable
Riskpro was founded in 2009 with offices in Mumbai, Delhi, and Bangalore and it has
already added eight member firms in Ahmedabad, Agra, Chennai, Gurgaon, Hyderabad,
Jaipur, Ludhiana, and Pune. All our offices and member firms are well equipped and
staffed with qualified professionals viz. CA, CWA, CS, CPA, CISA, CFA, and MBA
Riskpro‟s founders are qualified risk management specialists with extensive work
experience in Europe and USA in several industries and financial institutions
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About Riskpro India (cont…)
RISKPRO SERVICES
Our four major practice specialisations /service lines are:
• Risk: Enterprise Risk Management (services and training & recruitment)
• Governance: Corporate Governance and Transparency
• Compliance: Global and Indian Regulatory Compliances
• Training: in all of the above service lines
The Risk Practice deals with all classes of risks and processes viz. governance, strategic,
systemic /infrastructure, compliance, reporting, and financial reporting. Processes require
that key risks are properly identified, measured, monitored, controlled, and reported.
Processes may also require tools like risk based internal audit, information security testing,
and fraud investigations, to be employed
The Governance Practice deals with corporate oversight and risk governance issues within an
organization including business continuity planning, compliance with SEBI guidelines by
listed companies, regulations relating to independent directors, investor expectation and
protection, Clause-49 on corporate governance, etc
The Compliance Practice covers a wide range of regulatory and environmental compliances
including Sox, IFRS, Solvency II, Basel II /III, Corporate Laws & Direct Tax Code etc
The Training Practice comprises of a variety of structured and /or industry specific training
programs and modules designed and conducted by Riskpro experts and trainers at onsite
(client or other offices) and offsite (Riskpro Training Centre) training facilities
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Our differentiating factors
● Adding value to the client and protecting their business is paramount and our
logo symbolizes that bond of protection
● Unique combination of International, senior, hands on industry experience,
across all areas of the requirement.
● Mature and deep domain expertise, along with current involvement in strategic
business growth activity.
● Strengths in relation to Business Model and Objectives - Track Record of
Ethical Practice
● Strengths in relation to Implementation Plan - Proven Success in taking
businesses from Vision to Reality through tactical Implementation across all
aspects of the plan
● Strengths in relation to Requirements- Track Record in geographical,
Professional and Business areas.
● Value for money
● Building enduring relationships with all our clients as a trusted business
partner
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Riskpro Clients
Our Clients
Any trademarks or logos used throughout this presentation are the property of their
respective owners
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Team Experiences Our Experiences
Any trademarks or logos used throughout this presentation are the property of their
respective owners
Our team members have worked at world class Companies
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Quality assured
We place great emphasis on quality control and quality management.
Our quality process Our Quality Process is designed to provide a quality culture, to analyze the processes used to hire, train and retain staff, to develop and deliver services to our clients and to administer our own business.
Skills and competence Personnel in the firm adhere to the standards of independence, integrity, objectivity and confidentiality. The firm is staffed by personnel who have attained, and who maintain, the skills and competence required to enable them to fulfill their responsibilities. To assist in maintaining these skills the firm has procedures for: training of staff at all levels, through both formal
courses and on-the-job experience; continuing professional education; assigning work to personnel who have the degree
of technical training and proficiency required in the circumstances; and
evaluating the performance of staff and counseling staff as to their progress and career opportunities.
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CONTINUOUS IMPROVEMENT
Leadership and Quality
Culture
Information Analysis and
Planning
Human Resource Processes
External Service
Processes
Business Processes
Service Delivery
Measure Client
Satisfaction and Business
Results
Direction and supervision The firm provides for appropriate direction and supervision at all levels, together with appropriate consultation procedures, to give reasonable assurance that the work performed meets the highest standards. We:
employ and retain only those persons with the intelligence, education, character and diligence necessary to assume professional responsibility;
assign engagement responsibility to only those persons sufficiently trained and supervised to discharge those responsibilities;
not accept or continue a client relationship in circumstances incompatible with the firm’s integrity;
adopt promptly policies necessary to realise the objective of professional standards and applicable regulatory requirements;
maintain policies to ensure that the firm and its professionals are free of conflicts of interest and that professional excellence is achieved;
not tolerate any act that can damage the firm’s credibility.
Confidentiality We are well aware of the importance that you place on confidentiality requirements and we have a proven record of maintaining a strict code of confidentiality. Our firm policy requires that affairs of clients be confidentially kept at all times.
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Clear and continuous communication
At Riskpro India, open and honest communication is a Core Value. Our experience
leaves us in no doubt that a successful relationship is based on trust and candid,
proactive communication.
Regular and open two-way communication is fundamental to all aspects of our service
to you. As an initial priority, we will agree with you an annual Communication Plan for
all our key meetings. This will help ensure there are formal and informal opportunities
for all key stakeholders to be kept informed of the issues that matter, and that there will
be “no surprises”.
Key objectives Meeting/stakeholders
Present annual audit plan
Report key findings
Updated assessments of key risks, including emerging risks
Discuss new regulatory and corporate governance requirements
Bi-annual meetings (or as requested) with the
Board / Audit Committee
Discuss strategy
Discuss operational matters and performance
Raise and consider emerging issues
Quarterly meetings with the Chief Executive
Officer
Discuss operational matters and financial performance
Discuss implications of changes to the reporting and internal control framework
Regular meetings with Head of Financial
Control
Discuss operational and business matters Meetings with operational management
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Our fees
Our aim is to build a long-term relationship with you. We believe that the essence of
building such a relationship is the quality of the service and expertise that we provide.
We also believe that the combination of our international expertise with local market
knowledge enables us to propose a fee that provides value to you.
Accordingly our fee will be structured as a fixed fee which would be payable in two
equal instalments, on commencement of the engagement and on submission of the
draft report.
No Particulars Number of Man Days Per Diem Rate - INR
1 Staff Category
Partner 8,000 - 30,000
Manager 4,000 - 6,000
Staff Accountant ~ Rs 2,000
2 Expenses
Travel and Conveyance
Board and Lodging
Actual Cost
ex Delhi, and ex Mumbai
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RESUMES – Our team
Founder - Riskpro
CA, CPA, MBA-Finance (USA), FRM (GARP)
Over 10 years international experience – 6 years in Bahrain and 4 years USA
15 years exp in risk consulting and internal audits
Sox Compliance project for Fannie Mae, USA ( $900+ Billion Mortgage Company)
Specialization in Operational Risk, Basel II, Sox and Control design
Led medium to large engagement teams
Ma
no
j Ja
in
Co- Founder - Riskpro
CA (India), MBA (Netherlands), CIA (USA)
Over 15 years of extensive internal and external audit experience in India and abroad.
Worked with KPMG United Arab Emirates, PKF South Africa, Ernst and Young Kuwait, Deloitte Netherlands and KPMG India.
Worked with clients in a wide variety of industries and countries including trading, retail and consumer goods, NGO, manufacturing and banking and finance. Major clients include banks, investment companies, manufacturing organizations, aviation etc.
Ra
hu
l B
ha
n
Credentials
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Consultant – Corporate Governance
FCA, FCS, ACIS (UK), CFC (USA), PHD (Corporate Governance)
25 yrs of professional experience as a Chartered Accountant with exposure in accounting, auditing, corporate laws, service tax matters and banking/ financial services.
Large number of published articles on subjects such as Service Tax, Accountancy and Auditing, Capital Market, Merchant Banking, Taxation, Corporate Governance and Corporate laws. He has authored/ edited twenty five books.
He has been a SEBI nominated Director on the Boards of Jaipur Stock Exchange Ltd. and JSEL Securities Ltd. He has also been an independent Director on the Board of Compucom Software Limited for a period of 3 years and has also been an independent Director of State Bank of Bikaner & Jaipur for 6 years since August 2004, where he held various positions including that of audit committee chairman.
Sa
njiv
Ag
arw
al
RESUMES - Partners
Corporate Consultant
25 years of work experience both In India and Middle-East with some of the largest audit and assurance, software and trading companies in the world.
Some of the companies where he created his reputation were, Senior Director (Global Revenues), Oracle India; Bangalore, EFunds International, Ernst & Young, Dubai, U.A.E, Jumbo Electronics Co. Ltd. (LLC), Dubai, U.A.E., Price Waterhouse Coopers.
Rakesh is an expert on Financial & Accounts outsourcing and operations of all aspects of “shared centers” including HR processes and people strategy catering to global operations across Order to Cash, Procure to Pay and Reporting and Analysis.
Rakesh K
ochar
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Corporate Consultant and chartered accountant (UK) – ex PwC Canada
Four decades of work experience in business accounting, auditing, consulting, and managing business enterprises in the „new and old economy‟.
Relevant experience includes private equity (UK based Indian mid-cap fund), information technology (hardware and software), infrastructure (highway, SEZ, township)
Leadership roles:
CMD – Fertilizer Corporation of India;
Group CEO – The Maharaja Organisation, Colombo, SL;
Executive Director (Finance) – CMC Ltd (now TCS);
Investment Director – private equity fund;
Director – Ernst & Young Consulting India
Ra
j S
aw
hn
ey
RESUMES - Partners
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Specialist Risk Consultant – Business Continuity
Founder and 15-year Chairman of Survive, the first international user group for Business Continuity professionals
Founding director and first Fellow of the Business Continuity Institute
Over 25 years international consulting expertise in Risk, Crisis, Emergency, Incident, and Business Continuity and ICT Disaster Recovery Management
Multi-sector experience including Banking, Insurance, Finance, Oil, Gas, Energy, Manufacturing, Retail, Hi-Tech & Telecom
Western Press Award for services to business, 1994; BCI/CIR nomination for lifetime achievement in BC, 1999, London; inducted into BC Hall of Fame by CPM magazine, 2004, Washington DC.
Andre
w H
iles
RESUMES - Partners
Specialist Risk Consultant – Enterprise Risk Management
Highly skilled risk and insurance professional with 25 years of experience designing, developing and implementing large, global corporate risk management programs for Fortune 500 firms.
Principal Consultant and Founder - Excellence in Risk Management, LLC. (Texas, USA)
Past experiences include USAA, PepsiCo, American National Red Cross ,Verizon
Chris E
. M
andel
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RESUMES - Advisors
Founder partner of Mehrotra and Mehrotra, a 48 year old CA firm in India
Bcom, FCA, LLB
Over 48 years of experience in audits, taxation, legal matters, loan syndication etc.
Trustee of Cochin Port Trust, Member of Task Force for MOUs, Ministry of Heavy
Industries & Public Enterprises, Govt. of India, Ex- Member of Central Board of
Trustees, Employees‟ Provident Fund Organisation (EPFO), Ministry of Labour,
Govt. of India, New Delhi.
Ex - Director, Canara Bank
Mr.
MP
Me
hro
rta
R
aje
sh
Jh
ala
ni
Credentials
Director - Riskpro
B.Com, FCA
Senior Partner with 48 year old Delhi based Chartered Accountant firm, Mehrotra and Mehrotra
Over 19 years of experience in the field of Audit, Taxation, Company law matters.
Major clients served are NTPC, BHEL, Bank of India, PNB, Airport Authority of India etc.
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Contacts
Email : [email protected]
Web: www.riskpro.in
THANKS
MUMBAI
Manoj Jain, Director
B-44 Glaxo Building, Near Mt. Mary’s Steps, Bandra (W), Mumbai 400050
M- 98337 67114
DELHI
Rahul Bhan, Director
C-561, Defence Colony, New Delhi-110 024
M- 99680 05042 E- [email protected]
Delhi
Rajesh Jhalani, Director
C-561, Defence Colony, New Delhi-110 024
M- 98103 94611 E- [email protected]
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ANNEXURE I - Our Audit Methodology
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Our audit methodology
Our audit methodology is risk-based and systematic which focuses on the organizational
objectives and any impediment to achieving those objectives. We recognise fully the need to
provide assurance on your business operations. Equally, we recognise the importance of
managing compliance issues, particularly in today‟s evolving regulatory environment.
The key benefits of our audit approach are:
●Risk-based, & systematic approach;
●Focus on areas considered as potentially & most likely to
lead to material errors in financial statements;
●Our audit control procedures are based on project planning
techniques, including the use of automated processes and
document templates, and the agreement of objectives,
timetables, responsibilities and careful resource planning;
●The focus of our reports are to generate constructive and
value added advice; and
●Identifies performance improvement and cost reduction
opportunities.
Audit Strategy / Planning
Risk Assessment
Understanding of Business
Fieldwork
Dealing with critical issues
Reporting
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Our audit methodology - Risk Based Internal Audit How we Do
Transaction
Audit
Control
Reviews
Process
Reviews
Risk
Assessment
Fraud
Mitigation
Enterprise Risk
Assessment
Increasing Enterprise Risk Focus
Need
of
Org
an
izati
on
s
Internal Auditing helps an organization
accomplish its objectives by bringing a
systematic, disciplined approach to evaluate
and improve the effectiveness of risk
management, control and governance
processes. Source: The Institute of Internal Auditors 1999 (IIA)
Benefits of Risk based Audit
• Traditional audit view value added
techniques
•Risk profile of Businesses
•Internal Controls & Ops Risk reviews
•Cost reductions recommendations
•Review of Fraud Risk Controls
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Our audit methodology (cont..)
UNDERSTANDING THE BUSINESS
Our top-down risk-based approach ensures that the audit focus is on the issues that
are of greatest importance to you and that we are in the most appropriate position to
respond to them. Our audit starts with a detailed understanding of your industry and
business.
Our approach is based on a top-down examination of the key drivers of your business.
The output is a balanced picture of how the company interacts with customers and
external industry forces. We consider the audit implications of this analysis and use it
to identify significant audit risks.
We use industry specific business models to gain information on:
• industry background including major players, regulatory changes and trends,
• risks and drivers,
• geographic issues,
• descriptions of business processes,
• benchmarks and best practice and
• audit risks.
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Our audit methodology (cont..)
RISK ASSESSMENT
In order to run your business, you develop processes to manage the factors that drive
performance and help control internal and external risks that could prevent you from meeting
your objectives. We focus on those processes where significant risks have been identified and
discuss with management its perception of how these risks are controlled. This phase of our
work enables us to obtain information on the processes supporting the achievement of the
company‟s goals.
AUDIT STRATEGY AND PLANNING
Based on the understanding of business and risk assessment we devise the audit strategy. We
then develop detailed audit programs to test the transactions, processes and balances.
AUDIT FIELD WORK
The audit test work flows from strategic planning and risk assessment. The key element is to
review and test the high level controls embedded in your processes, as significant weaknesses
in your key processes could cost, both in terms of financial impact and reputational damage. We
also carry out necessary substantive audit procedures.
DEALING WITH CRITICAL ISSUES AND REPORTING
We identify and discuss all critical issues with management. We then determine whether the
Company‟s financial statements and related disclosures meet our expectations.
We provide the audit report, management letter and any other deliverables and formally present
these to the Audit Committee / Board.
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Our audit methodology (cont..)
IT AUDIT PROCESSES AND METHODOLOGY
We see IT as an enabler of the operational and financial processes and we
incorporate IT audit professionals into our audit to facilitate the identification and
testing of IT controls.
We use our focused IT audit methodologies and tools as part of our core audit
process to evaluate and test whether the Company‟s information systems are
configured for data integrity, are secure and are effectively managing the business
needs. We work with key business and IT management to identify aspects of IT
that pose the highest risk to the Company. We then conduct a systematic, detailed
review of those areas in which we:
• identify appropriate IT control objectives that map to key business
processes;
• identify relevant IT policies and procedures and/or industry IT standards;
and
• evaluate the design of controls and test whether they are in place and
operating effectively.
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Our audit methodology (cont..)
We use the following types of IT methodologies:
Continuity management
System capacity and availability
Back up and recovery
Data storage
Project risk assessment
Quality Assurance
Project management methodology
Programme management
processes
Process Documentation
Control Risk Analysis
Control Design & Implementation
Network penetration testing
Information security assessment
Enterprise security architecture and
integration
Ongoing monitoring
IT AUDIT METHODOLOGIES
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Our audit methodology (cont..)
INTELLIGENT USE OF TECHNOLOGY
Technology is only one component of an integrated approach that combines
methodology, knowledge and technology into our tailored service to you.
We deliver our external audit services using a fully automated audit software. This
software is designed specifically to integrate knowledge management into the audit
process. Technology can never be a substitute for face-to-face communications and
we continue to rely on meetings with management to identify, resolve and
communicate issues.
Knowledge
MethodologyTechnology
Knowledge
MethodologyTechnology
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Strategic questions with regard to the engagement
• Have you had any personnel changes that have impacted your area?
• Have you had any computer system/computer software changes and are any projected
for your area?
• Has your area experienced any losses in recent years? If so, please describe.
• Do any third parties such as the external auditors or regulatory auditors review your
area? If so, please provide the report.
• Do you have any regulatory reporting requirements? Describe the frequency and
sensitivity of the filing.
• How much do you rely on manual processing in lieu of computer processing?
• What areas have you experienced poor performance?
• Has the volume of transactions processed in your area changed?
• What type of impact could your unit have on the Association‟s reputation, if you did not
meet your mission?
• Do you have any Program performance issues that you want reviewed?
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ANNEXURE II - Legal Compliance
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Legal compliance
Stage 1 – CAC
Preparation of Compliance Audit Checklist (CAC) covering all relevant laws
applicable to the target unit.
Stage 2 - Visit to location
Verification of relevant records and documents available.
Compilation of draft report based upon findings and observations of the audit
team
Review meeting with the unit head / work directors to discussion on the
finding of audit.
Stage 3 – Report
Submission of detailed Non Compliance (NC) report to the company (Board
of Directors or Compliance Head)
Follow up with the unit to verify action taken
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Legal compliance (Acts covered - HR)
Factories Act, 1948 Shop & Establishment Act (state acts)
Payment of Wages Act, 1936 Maternity Benefits Act, 1961
Minimum Wages Act, 1948 Gratuity Act, 1972
Equal Remuneration Act, 1976 ESI Act, 1948
Payment of Bonus Act, 1965 Apprentices Act, 1961
Provident Fund & Misc Provisions Act,
1952
Employment Exchanges (Compulsory
Notification of Vacancies Act), 1959
Contract Labour (Regulation & Abolition) act, 1970
Trade Unions Act, 1926
Workmen Compensation Act, 1923 Private Security Agencies Regulation
Act, 2005
Prevention of Sexual Harassment
(Guidelines) Industrial Disputes Act, 1947
Labour Welfare Act (state acts)
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Legal compliance (Acts covered - Engg.)
Electricity Act, 2003 Environment Protection Act, 1986
Petroleum Act, 1934 Water (Prevention and Control of
Pollution) Act, 1981
Explosives Act, 1884 Air (Prevention and Control of
Pollution) Act, 1981
Boilers Act, 1923 Water Cess Rules, 1977
Legal Meteorology Act, 2011 Hazardous Waste Handling &
Management Rules, 1989
Essential Commodity Act, 1945
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Legal compliance (Acts covered – Tax & Misc)
Micro, Small & Medium
Enterprises Devel. Act, 2006 Central Excise Act, 1944
Central Sales Tax Act, 1956 State VAT Acts
Customs Act, 1962 (export and import
documentation) Service Tax Act, 1955
Income Tax Act (payment of Tax, TDS) Foreign Exchange Management Act
Negotiable Instruments Act, 1881 Industries (Development & Regulation)
Act, 1951
Information Technology Act, 2000 Motor Vehicles Act, 1988
Competition Act, 2002